According to The Australian Financial Review, Stockland is eyeing the growing market of budget accommodation for downsizing Baby Boomers after finding its traditional home product struggled to compete in price-sensitive growth corridors.
The country's largest listed developer has set aside two sites in Townsville and Sunshine Coast to pilot so-called land lease developments and has earmarked a further five sites – some in Melbourne – to dedicate to the product, if the pilots prove successful, chief executive Mark Steinert said.
Citing the success of smaller specialist developers ASX-listed Lifestyle Communities and Gateway Lifestyle Group, purchased by US giant Hometown last year for $685 million, Stockland aimed to tackle the affordable sector in which buyers purchased only the dwelling and paid rent – with the benefit of rental assistance – on the land, Mr Steinert said.
"And what we've noticed is where we've had villages in those locations, and we're competing with these land lease communities, we're typically finding it hard to compete. So rather than compete with them, we'll join them."
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